Panasonic Energy, a battery supplier for Tesla, is considering increasing investment in Kansas, USA, and is evaluating whether to expand production capacity in De Soto city, according to Nikkei Asia.
The plan, internally referred to as Phase 3 at Panasonic, includes adding production lines in Kansas. According to a source familiar with the matter, the proposed scale of the plan is similar to the current size of the De Soto factory, with Tesla being the main customer for the additional capacity.
A source directly involved with the plan stated that it is still in the early stages and "no final decision has been made," with a possibility of a final decision by the end of this year. Additionally, The Wall Street Journal recently reported that due to rising construction costs in the United States, most of Panasonic's initial investment budget for the De Soto factory has already been spent.
Several sources mentioned that Panasonic may utilize the additional capacity to produce 4680 batteries. While Tesla and companies like LG Energy Solution of South Korea are also developing 4680 batteries, Panasonic still believes it holds a leading position in technology and safety. Currently, Panasonic is testing 4680 batteries at a factory in Wakayama Prefecture, western Japan, and evaluating the production efficiency of these batteries.
Mitsutaka Fujita, a researcher at the Japanese analysis company Techno Systems Research, stated that Panasonic's plan reflects stable demand from Tesla. With intensifying competition in the electric vehicle market, Tesla can still generate substantial profits even after price reductions, unlike traditional automakers relying on hybrid and internal combustion engine vehicles to offset losses in their electric vehicle businesses.
Fujita believes that Tesla "desperately" needs more 4680 batteries, as the company's in-house production of these batteries has faced difficulties, potentially leading to a shortage of batteries.
